CIMB Research maintains Add on My E.G, says more positive news flow in near term

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KUALA LUMPUR (Nov 3): CIMB Research has maintained its Add rating on My E.G. Services Bhd at RM4.02 with an unchanged target price of RM5.28 and advised investors to remain invested in My E.G.

In a note Nov 2, the research house said other than the proposed bonus issue, there would be more positive newsflow in the near term, as MyEG was likely close to securing the government’s final approval for the custom service tax monitoring (CSTM) project.

“The CSTM project is expected to be MyEG’s main earnings growth driver over the next few years,” said the research house.

“We maintain our Add recommendation, with the government’s final approval for the CSTM project and further developments on the road safety diagnostic system project as potential re-rating catalysts,” it said.